Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 27th, 2015
Webcast Event
A large body of research now confirms the magnitude of the leakage problem in the U.S. retirement system. However, little has been done to investigate the behavioral drivers of leakage, especially cash-outs. This webcast covers the findings of fresh research conducted by Boston Research Technologies, offering revealing insights into job changer’s decisions about their retirement plan balances, particularly related to cash-outs, as well as their attitudes and behaviors towards portability (moving their retirement savings), such as leaving their balances in the former plan or rolling those assets over to their new plan or to an individual retirement account (IRA). The session concludes with practical and effective steps that all plan sponsors should take, given the risks and opportunities that the study reveals.  Read more >
Benefits & Administration
Short-Term Finances Trump Distant Needs
A study from the Center for Retirement Research at Boston College finds even the wealthiest segment of savers has trouble with long-term financial planning—implying automation and simplicity are the best approaches to promoting retirement readiness. The analysis concludes that Americans at all ages and income levels are short-sighted about their finances, substantially favoring short-term measures of financial fitness over longer-term measures. The researchers even suggest, based on the results, that Americans “on their own cannot be expected to devote much effort to addressing distant financial problems.”  Read more >
PLANSPONSOR Research
PLANSPONSOR’s 2015 DB Administration Survey
While the defined contribution (DC) plan industry races forward, 33 providers still tend to the flock of defined benefit (DB) plan sponsors and participants.  Read more >
Products, Deals & People
Brian C. Ford has joined asset management firm The TCW Group as a senior vice president for the institutional marketing team. In this role, he manages relationships with institutional clients in the mid-Atlantic region.Read more >
MOST READ ARTICLES

2021 Health Savings Account Survey
Data and Research
Health Care Costs in Retirement Remain a Top Stressor

2020 Recordkeeping Survey
MJM401k LLC, an independent, national 401(k) plan consulting firm, appointed Mary A. Berk to the leadership team as a senior consultant and plan analyst. Berk will join MJM’s staff as an additional resource focused on the efficient oversight of 401(k) plans. Her primary focus is on the client relationship, total plan management, and driving efficiency for both employers and participants in four key areas.  Read more >
Economic Events

Sales of new single-family houses in April were at a seasonally adjusted annual rate of 517,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 6.8% above the revised March rate of 484,000 and is 26.1% above the April 2014 estimate of 410,000.

 

The Conference Board Consumer Confidence Index, which had declined in April, increased moderately in May. The Index now stands at 95.4 (1985=100), up from 94.3 in April. The Present Situation Index increased from 105.1 last month to 108.1 in May. The Expectations Index edged down to 86.9 from 87.1 in April. 

Market Mirror

The stock market had its worst day in three weeks as traders worried about Greece’s debt problems and a surge in the value of the U.S. dollar, according to the Associated Press. The Dow closed 190.48 points (1.04%) lower at 18,041.54, the NASDAQ fell 56.61 points (1.11%) to 5,032.75, and the S&P 500 decreased 21.86 points (1.03%) to 2,104.20. The Russell 2000 was down 13.47 points (1.08%) at 1,238.76, and the Wilshire 5000 lost 225.44 points (1.00%) to finish at 22,224.39.

 

On the NYSE, 3.2 billion shares traded, with declining issues outnumbering advancing issues nearly 4 to 1. On the NASDAQ, 2.8 billion shares changed hands, with a 3 to 1 lead for decliners.

 

The price of the 10-year Treasury note increased 21/32, bringing its yield down to 2.139%. The price of the 30-year Treasury bond climbed 1 24/32, decreasing its yield to 2.898%. 

From the Magazine
Considering the Impact of the SOA Mortality Tables
New mortality tables from the Society of Actuaries (SOA) reveal that participants are living longer, which translates into a longer benefit payout for defined benefit (DB) plan sponsors, according to Michael A. Moran, senior pension strategist at Goldman Sachs Asset Management in New York City. As a result of the new tables, Moran says, some companies have already reported higher liabilities—ranging from 2% or 3% to 7%, 8% or higher.  Read more >
Small Talk
Small Talk: Sedentary Workers Pack on Pounds
A CareerBuilder survey finds 42% of workers say they’ve gained weight in their present job. When asked what they felt contributed to their weight gain, 56% said “sitting at the desk most of the day.” Workers in certain professions were more likely to report gaining weight at their present job.  Read more >
ON THIS DATE: In 1933, Walt Disney’s “Three Little Pigs” was first released. In 1937, the Golden Gate Bridge, connecting San Francisco with Marin County, California, officially opened. In 1963, Bob Dylan’s breakthrough album, “The Freewheelin’ Bob Dylan,” was released. In 1969, construction of Walt Disney World began in Florida. In 1972, Soviet President Leonid Brezhnev and U.S. President Richard Nixon, meeting in Moscow, signed the Strategic Arms Limitation Talks (SALT) agreements. In 1995, in Charlottesville, Virginia, Christopher Reeve, who played Superman in several movies, was paralyzed after being thrown from his horse during a jumping event. 
WEDNESDAY WISDOM: “When your work speaks for itself, don’t interrupt.” —Henry J. Kaiser, American industrialist who became known as the father of modern American shipbuilding 
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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